THE north's industrial past is littered with names that were regarded as ground-breaking innovators. Luminaries such as Ferguson, Dunlop, Pantridge are part of our heritage. When we think about our potential, we presume we can look to the achievements of those giants and follow in their footsteps.
But when you step outside the ethereal comforts of history and future ambition, what of our present? How are we actually doing? Well despite the many individual examples of excellent businesses engaged in innovation, the honest answer is we are performing poorly.
Northern Ireland is the lowest ranked region in the latest UK Innovation Survey. Invest NI has ambitious targets to place us in the top four regions by 2025. So why are we not better focused on innovation, and protecting and monetising it as intellectual property (IP)?
Many people don't realise that they are generating enforceable rights in copyright all the time. Copyright protection is conferred upon the 'author' of any original literary, dramatic, musical or artistic work once it is written down or recorded (e.g. a musical composition, or a marketing brochure), and irrespective of any literary or artistic merit. Such protection generally lasts for the life of the author plus 70 years.
Trade marks protect any sign or word capable of being represented graphically which distinguishes goods or services of one undertaking from another.
By registering a trade mark, renewable every ten years, one can obtain exclusive use of that business name, logo, slogan, etc.
Patents apply to industrial processes and inventions and are, like, trade marks, a registrable IP right. A registered patent gives the owner an exclusive right for up to 20 years to use, sell or manufacture the product or process in each jurisdiction in which the patent is registered.
To be capable of registration, the product or process must be (i) novel, (ii) involve an inventive step, (iii) be capable of industrial application, and (iv) not be a type of work excluded by the legislation (e.g. computer program, or a copyright work).
Generally an application must be made in each market in which you want to benefit from patent protection, although international protection can be obtained in multiple jurisdictions via individual applications for a European Patent and/or under the Patent Cooperation Treaty (PCT).
Therefore, if your business creates something innovative and genuinely novel, before that is put anywhere near the public you should pause and consider applying for patent protection. If the invention is made public, whether via being put on the market or via a patent application published in a different jurisdiction, it could serve to invalidate any subsequent patent application because, ironically, your invention will not be deemed as 'novel' by virtue of your own product or process being more widely known by that point.
If they are established and enforced properly, IP rights can be immensely valuable assets for a business. They can confer exclusive rights to the use and exploitation of business names, logos, products, processes, designs, written works, etc., and prevent others from taking advantage of your reputation and goodwill.
They can also be monetised to great effect beyond your own use of the IP, by (i) licensing the IP to other businesses; (ii) selling or assigning the IP rights; or (iii) using the IP as security for loans if the IP rights are of sufficient value.
Businesses which undertake work aimed towards advancing science or technology may be eligible for research & development tax reliefs. Additionally by electing into the Patent Box regime, companies are allowed to pay tax on qualifying profits earned from its qualifying patents or patented inventions at just 10 per cent, which could potentially save them tens if not hundreds of thousands of pounds in tax each year. However, to date the take-up on the Patent Box regime by businesses in Northern Ireland is fairly low.
Given its value, IP should be part of a business's wider strategic planning efforts. Often our first step in helping businesses is an audit of what IP rights they hold, and importantly, where protection is lacking. Considering how to monitor the market and act to negate any potential infringement of your IP rights, should be high on the agenda of any successful business.
If we are to progress beyond Northern Ireland propping up innovation league-tables, businesses must be strategic about how to harness the power of IP. A great start would be to think inside the (patent) box!
:: James Griffiths (james.griffiths@pinsentmasons.com) is a senior associate at international law firm Pinsent Masons specialising in IP and licencing issues
